Unwritten Rule #10

Unwritten Rule 10: Acknowledgment receipts (AR) for full payment have to be notarized.

Since non-RE-engaged sellers don't have official receipts registered with the BIR, regulators require sellers to issue ARs instead. This document serves as proof that the sellers received XXX amount for the sale of a property (despite Deeds of Absolute Sale already stating "receipt of which is hereby acknowledged by the SELLER.")

Previously, when regulators suspected that the seller was undervaluing the transaction amount, they required the AR to be notarized so the signatories take the documents they signed more seriously. Over time, more examiners have required this regardless of whether or not they doubt the transaction amount stated in the AR.

Because of the hassle of spending hours simply to submit documents (and only to be told the AR has to be signed), having the AR notarized has become the new norm. The extra cost of having this document notarized from square one is significantly less than the cost of going back and forth to the regulators' office.